Month: December 2016

Well 2016 certainly hasn’t been a boring year. There have been major headlines throughout 2016 with many of our cultural icons passing on, political turbulence with Brexit and across the pond. You could say 2016 has been a difficult year but the great British Bake Off is back, Andy Murray won at Wimbledon and is the property market getting stronger?

I think many homeowners and buyers across the UK and more locally in SK6 will all have a similar opinion on what the market is doing, “Where are all the houses!!” And you would be right. The market has seen a lot fewer properties come available across the UK with 31% fewer houses in SK6 in comparison to 2015, which was a colossal 271 houses.

Many of our clients have experienced the dilemma of “need to move” but “nowhere to go to” and when new properties come available they tend to sell very quickly. This issue has mainly been the result of additional stamp duty charges coming into place, the European referendum and low mortgage rates. The property market was given an injection of pace at the start of the year with the rush to buy before additional stamp duty was put into place in April. This saw many buyers and BTL investors purchase a property quicker than they would have done before and in many cases something they would not have considered if the higher stamp duty wasn’t coming in, an element of panic buying. This set the tone of the market from January, and other than June, we saw an extremely strong year for properties selling, with nearly 8 out of 10 houses going under offer in comparison to only 6 out of 10 in 2015 in SK6.

As mortgage rates have been at an all-time low throughout the year, this has seen buyers realise that it is cheaper to pay a mortgage than to rent as rents continue to rise with no sign of slowing down. This has only fuelled the rise in the market locally with more able buyers now able to buy at all price brackets, creating fierce competition and pushing prices up across the board. The other issue buyers have experienced is high demand. SK6 has continued to grow in demand over the last five years but it has been more evident this year, due to the lack of new properties available. Our outstanding schools, picturesque location and short train journeys to Manchester continue to attract new families to the area. In many properties we have dealt with we have seen viewing numbers in double figures, with multiple offers and breaking the ceiling value of the street.

A new survey suggests that a letting agent saves a landlord an estimated £1,910 a year.

The result of an investigation into 500 landlords by insurance firm Endsleigh suggests that there are widespread misconceptions among landlords about the value for money offered by letting agents.

Of those landlords suggesting that they could save money by not using agents, the average sum ‘saved’ on fees was £159 per month. However, a new survey suggests that a letting agent saves a landlord an estimated £1,910 a year.

The result of an investigation into 500 landlords by insurance firm Endsleigh suggests that there are widespread misconceptions among landlords about the value for money offered by letting agents.

Of those landlords suggesting that they could save money by not using agents, the average sum ‘saved’ on fees was £159 per month.

However, comparative analysis of the rental income and void periods for those landlords with, and those without, agents suggested that in fact agents saved their clients an average of almost £2,000 each.

Most of the savings for landlords are created by agents minimising void periods when compared to landlords who go it alone marketing their property.

Some 76 per cent of respondents to the survey reported that their agent helped them pro-actively find tenants, as well as providing other services such as help with legal and financial matters and so contributing to a reduction in overall costs.

This week’s buy to let property is on Edwards Way, Marple. This 2 bedroom end of terrace property is set in a spacious corner plot with off road parking and offers no onward chain. This well presented property offers a well-proportioned lounge/dining room with a nicely furnished kitchen. Upstairs there are two double bedrooms with more than enough space for a small family along with a well presented bathroom with a 3-piece suite. The external space is where this property shines, with the property being on a corner plot there are lawned areas that wrap around all aspects of the property and gated off road parking at the side.

The potential yield for this property is 5.2%, this is based on £750 pcm, the capital growth is what this property has to offer however, the location of the property is great for transport links into nearby surrounding areas, taking only 35 minutes to get into the centre of Manchester from Rose Hill train station. The property is also in walking distance for Marple College, Marple Hall High School and the newly furbished Rose Hill Primary School and local amenities. Currently on the market with Reeds Rains, Marple at £170,000

It is the time of year when we can reflect on how the last four quarters have performed. The adjacent chart splits the total number of sales for all property types into quarters. Not surprisingly, last quarter of 2015 was the strongest quarter with 256 sales (32.4%) in SK6. The first quarter of 2016 saw 242 sales, which equates to 30.6%.

In SK6 the most common property tenure is owning with a mortgage (23,333 households which is equal to around 46%). This figure also includes shared ownership. The next more common tenure is those lucky people who own their home outright, accounting for 17,400 households or 35%.

The last 18 months have seen a seismic shift in the underlying dynamics of the UK economy. While the long term effects of Brexit on property prices remain to be seen, price levels in SK6 remain robust, as the adjoining chart shows. Prices for flats have increased 10.3% since April 2016 and house prices have increased 11.7% since December 2015.

Exciting news! this week’s property is on Waterloo Road, Romiley. It is a 3 bedroom semi-detached property set in a very generous plot with off road parking for 2 vehicles and a single detached garage. This freehold property is a great family home which has been well looked after and would need minimal work doing to it, with 2 reception rooms and an extended kitchen which will be more than enough space for the modern day family. Upstairs it has two double bedrooms and a good sized single bedroom and a well presented family bathroom with a 3 piece suit. Outside, the property benefits from well-maintained front and rear gardens. The rear garden which is bigger than average provides a paved patio area and lawn.

The potential yield for this property is 5.8%, this is based on £825 pcm. The potential for capital growth is one of this property’s big drawing points, we have seen that the Romiley area over the last couple of years has become a more and more popular area with especially families, this is due to the ‘Good’ rated schools within the area and great transport links to Manchester Piccadilly and the M60 being a ten minute drive away. It is perfect for all aspects of the family.

Currently on with Bridgfords, Marple at £169,950 click below for more details.

A property’s desirability is often a popular subject when we are talking to homeowners and local investors. Sure, you will find that Kirsty and Phil are right, and it is all about “location, location, location”, but the savvy property hunter has something else on their minds these days, and that is “education, education, education”.

More and more people searching for a home are looking at a property’s proximity to a good school before signing on the dotted line. If you already have children, the importance of this cannot be taken lightly, while it is also something to think about for those who are planning on starting a family in the near future.

Ofsted report and rank all schools in the UK, with their results having a huge effect on how desirable a school is. Consequently, this has a knock-on effect on demand for nearby housing.

If you look at the league tables, you will see that Ludworth Primary School is one of the best local primary schools in SK6.

The figures don’t lie: in the last academic year, 96% of year six students hit the nationally expected target of level four and higher in the key areas of reading, writing and maths. It was also found that 47% of pupils hit the “above national average” level five. You can’t argue with a low pupil to teacher ratio either. Ludworth Primary School has an average class size of 21.6, which means more teacher attention for each pupil and a greater chance of child progression.

These excellent results have impacted both local schools and property prices. The 500m zone around Ludworth Primary School has an average sold property price of £275,100 in the third quarter of 2016, whereas 5km away the average sold property price was £234,000, a 15.0% premium

.

It is not quite the same story for secondary schools but there are good reasons for this. Your average secondary school is large, much larger than a primary school, so it takes in more pupils every year. This means that its catchment zone spans further than primary school’s catchment zones. Parents do not need to live so close to a secondary school to be assured a place for their child.

The other issue is that according to the London School of Economics, the difference between the top and bottom 25% of secondary schools is not quite as dramatic as the top and bottom 25% of primary schools. A good primary school in SK6 is potentially going to have far more of an impact on a child than a good secondary school.

Article categories

About the blog

This blog follows the property and buy to let market in Marple, The Bridge, Mellor and Compstall. You’ll find insight, commentary and analysis that relates specifically to SK6, along with the latest investment deals from all agents in the area.

jonathan hyde – the author

I have always worked in property and originally opened and head up Julian Wadden Marple. I am passionate about our area, so if you have any property related questions, whether buying, selling, letting out or just curious about what’s happening this very moment in the Marple, Marple Bridge, Mellor and Compstall property market then just pop into my office, alternatively call or e-mail me. I look forward to hearing from you and having a chat.